As Brexit approaches, business confidence in the UK economy is dropping


According to research, employers in the UK are increasingly worried about the economy as Brexit approaches.

The Recruitment and Employment Confederation (REC) administered a survey among 601 employers. It found out that 31% of the employers are expecting the economy to worsen, while 28% of them expect it to progress.

Meaning that the net balance has become negative, declining from +6% in the month of July to -3% in the latest report.

Kevin Green, REC’s chief executive, stated that issues that include access to Brexit negotiations, political uncertainty, and labour are creating nervousness.”

“The jobs market continues to do well despite growing uncertainty. However, this drop in employer confidence should raise a red flag,” Green added.

“Businesses are continuing to hire to meet demand, but issues like access to labour, Brexit negotiations and political uncertainty are creating nervousness. Employers in the construction sector are especially concerned as they rely heavily on EU workers to meet the growing demand for housing and to support the government’s infrastructure plans.”

The government has flip-flopped over a series of views and opinions on Brexit in the past weeks, including the own “red-line” of Prime Minister Theresa regarding the role of European judges. Also, Green requested on the government to offer greater clarity regarding its plans on Brexit.

Green stated: “The government must do more to create an environment where businesses have clarity. That means clearly laying out what Brexit plans look like and how employers can keep recruiting the people they need from the EU. The jobs market is in a good place, but employers will only continue to hire and invest if they feel assured about the future.”